Month: June 2017

The Delhi Development Authority (DDA) is going to launch its new housing scheme on June 30. Around 13,000 flats will be kept for sale this time. There will be a large number of flats returned in the 2014 Housing Scheme. DDA Housing Scheme 2017 has got covered under Prime Minister AwasYojana (PMAY) thereby one will get subsidy on interest of home loans. DDA vice-chairman MrUdayPratap Singh said, “We will launch Housing Scheme on 30th June.”

The housing scheme will be available from Rs7.5 lakh to Rs1.44 crore. Prices will depend on the type of flats and the area. Most of the flats will be of LIG One-Bedroom Category. A senior officer said, “There are more than 10,000 flats in the LIG one-bedroom category which are ranges between Rupees fourteen lakhs to thirty lakhs.’

As a nodal agency of PMAY in Delhi, DDA will help people to take advantage of the Credit Linked Subsidy Scheme (CLSS). Mr. JP Agarwal, Principal Commissioner of Housing and Land Disposal in DDA said, “Under the scheme, the eligible allottee can get subsidy on interest and under this scheme one can benefit fromRs 2.4 lakh to Rs2.7 lakh. However, the same allottee will be benefited by CLSS which will meet the provisions of the scheme on income and other scale.

The draws for the allotments will be conduct within three months from the last date of submission of the form, but this time, unalike the previous time, it has been ensured that only real buyers will apply for flats. Thus, it is decided to impose penalty of 25 percent to 100 percent on Ernest Money. While giving the requisite form for the flats, people will have to pay one lakh rupees for LIG, while for MIG and HIG, Rs 2 lakhs will be given as an Ernest money. However, no fines will be imposed on those people who will withdraw their applications before the draw.

Earlier this scheme was coming in the month of March, but DDA has decided to complete the pending works and provide basic facilities to those places. This decision was taken after the complaints regarding the absence of infrastructure in areas like Rohini and Narela by the people who has got the allocation of flats under the 2014 Housing Scheme.

The buyers who are paying installments for their flat, presently, they are paying 4.5 percent service tax. But after 1st July 2017, as soon as the GSTcomes into regulation, the buyers may have to pay 12 percent GST rather than 4.5 percent service tax. In the same way, its shows that right now one is paying less amount of money in the form of 4.5 percent service tax, but after GST it will raise the value of service tax to 12 percent which in turn increase the burden of tax on buyers. Thus, if one buys a home of any project after July 1, which is completed and nearby completion, then one have to pay more money in the form of 12 percent GST rather than 4.5 percent service tax.

Builders claim that the reason for raising 7.5 percent (4.5 to 12 percent) tax on GST is that they will not be able to claim credit from the tax paid before the GST is implemented. Most of the projects that have been completed or are due, most buyers have already paid 90 to 95 percent of their share. In such cases, the burden of heavy tax will be on the remaining 5 to 10 percent of the amount. After 1 July, any invoice issued by the builder will take 12 percent tax. Many developers have already sent a notice to give more tax on the remaining amount to the buyers.

We try to explain this whole case of increasing tax burden on buyers with the help of an example. Let’s say that any buyer has bought a flat of Rs1 crore, for which first installment of Rs 20 lakhs have been given along with 4.5 percent service tax. Now, he has to pay remaining 80 lakhsfor which the buyer will have to pay GST at the rate of 12 percent rather than 4.5 service tax. Thus, the buyer had to pay Rs 3.6 lakhs as a tax at the rate of 4.5 percent service tax on 80 lakhs but due to the GST being implemented now, he will have to pay 9.6 lakhs rupees at the rate of 12 percent.

The central government has given the in-principal approval to the international airport at Jewar in Greater Noida which will be operational within next five to six years. The government will require about 3000 hectares of land for the development of this international airport. It has also declared that the country’s first air cargo hub will also be built in this airport.Yamuna Expressway Development Authority (YEDA) has already identified three thousand acres of land. However, in the first phase, one thousand hectares of land will be needed. It is estimated to cost 15 to 20 thousand crores in the construction of this airport.

With the development of this international airport, hope for economic development of the districts of western Uttar Pradesh, strengthening tourism and increasing employment and business opportunities. According to Ashok Gajapathi Raju, Civil Aviation Minister, Uttar Pradesh and Siddharth Nath Singh, Minister of State for Civil Aviationtold in a joint press conference here that considering the growing number of passengers on the Delhi airport, planned an international airport at Jewar in Greater Noida in 2003. The previous governments of Uttar Pradesh have not given any special attention to this esteemed project. But, after becoming the Chief Minister, Yogi Adityanath,spoke to the Union Civil Aviation Ministry about this project and the work has started again in this direction.

He said that due to the formation of an international airport in Noida, industrial investment will increase in this area. Like a multinational company, Samsung is investing here, it will be very helpful in increasing its business. Similarly, plans to build the state’s Department of Health pharmaceutical park in the area, will help a lot from this airport.This international airport in Noida is expected to increase economic growth in the NCR region. This results in increase of tourism, employment and business opportunities in the NCR region and in nearby towns which includes Agra, Mathura, Vrindavan, Muzaffarnagar, Meerut, Aligarh, Bulandshahr and Moradabad in West Uttar Pradesh.

The DDA is coming up with the housing scheme under which about 12,000 flats will be available in 2017. The cost of the cheapest flat will be Rs.7.5 lakhs and the most expensive flat will be 1.45 crore rupees. The maximum number of flats are available under the LIG category which is around 11 thousand Flats. These flats are the same single room, which the people surrendered in the housing scheme 2014.

According to DDA sources, the number of flats fixed for the housing scheme so far has been 11,899. The highest number of these flats are 11 thousand LIGs Flats, 444 public flats, 375 MIs Flats and 80 HIG Flats. All these flats have been linked to the Prime Minister’s Housing Scheme. Thus, if anyone wants to take advantage of the Prime Minister Housing Scheme, then he will have to apply under Prime Minister Housing Scheme. It is reported that the single rooms are LIG flats. The cost of most of the LIG flats vary from Rs 14.50 lakh to 16 lakh rupees. However, some of the LIG Flats are priced at up to Rs 30 lakhs. The price of public flats will start from Rs 7.50 lakh to Rs 12.50 lakh. Similarly, the prices of MIG flats will be between Rs 31 lakh and Rs 50 lakh. Whereas, the HIG flats will be cost around 53 lakh to 80 lakh rupees. Whereas, some of the HIG flats will be worth Rs 93 lakhs to 14.5 million. The area of these flats will be vary from 18.80 square meters to 156.61 square meters.

Most of the flats will be in the area of Rohini. Though the other area include Narela, Dwarka, Rohini and Nasirpur where these flats will be available. Some of the flats will also be available in Southern Delhi.

The registry office has decided that the registry of flats will be done on the carpet area only and not on the super area of the flat. Now the flats can be sell only on the carpet area by any builder or agent.The Registry Department will send a letter to make this rule to the government. After getting approval from the government, the registry of the flat will be according to the carpet area rather than the super area. Thus, in such cases, investors will have to spend less in the form of stamp duty.

However, the investors who have made payment of super area of their flat, for them the registry department is going to do their registry on carpet area. The flat buyers who are around five lakhs in numbers can get great relief in registry fees.

The differences between carpet area and super area of the flat describe in detail in the following lines. The builder sales any flat according to the super area. The super area includes the balcony area and open areawhich is attached to the stairs outside the door. Whereas, the carpet area includes wall to wall area inside the flat. In any flat, there is a difference between 250 square feet to 500 square feet in the carpet area and super area. Further, now the investors will have to pay on carpet area at the time of flat purchase and not on the super area. At the same time, when purchase will be on carpet area then there will be a registry of the flat will also be as per carpet area. Thus, the flat owner will get the discount in stamp duty as per the carpet area. This will help the aspire investors of the flat as the valueof the flat will decrease.

Builders has got the idea to build affordable housing from this budget 2017 which is offering attractive tax and interest discounts for Affordable Housing. Also, half of the amount of money that has been credited to banks has come through housing loans.Other than this, Central Government has also launched the Prime Minister’s Housing Scheme. In this, developers who make Affordable Houses will be exempt from paying tax for 5 years instead of 3 years. This limit came into effect from 2016. It will apply to 300 square feet in metro cities and 600 square feet in non-metro area.

In line with the above declaration, buyers are attracted towards the affordable houses which increases the sales of homes priced below Rs 30 lakhs. As a result the demand for Home Loans has increased rapidly.

According to the Chairman of HDFC, Deepak Parekh, the home loan applications saw an increase of 21% compared from December to January. In February, the home loan application has increased to 24 per cent which further increased to 44 per cent in March. He said, “This is not for high-priced property, but for the Affordable Homes. So far, the average home loan size is 25.6 lakh but for the first time in many quarters it has happened when HDFC average home loan size has reached to 26 lakhs.

Further, Housing Financing Buyers hope that the subsidy given under the Prime Minister’s Housing Scheme will get an increase of 25 per cent in the Affordable Home Loan Segment. The scheme will be effective till December 2017 and it will earn 12 lakh rupees annually for those who earn Rs. 9 lakh loan, 4% and 18 lakh rupees for those who earn 12 lakh rupees for 3%.

The Delhi based reality, RG Group, has raised funds for completing its housing projects in Noida and to pay their levies to the Noida Development Authority. The group has taken Rs 170 crore from a private equity firm.

The RG Group is a famous builder of NCR and it has developed 14 commercial projects in the national capital, Delhi. According to RG Group MD Rajesh Goyal, the fund of Rs 170 crore from private equity firm will be utilized in the existing housing project at Noida by the name, RG Residences.Whereas, the company has one more housing projects in Greater Noida, where the construction is going on.

According to MD of the company, the project in Noida is already delivered and the possession is offered to the customers. As soon as, the company will pay off their dues to the Noida Authority, the customers will be able to register their property.

Further, he said, that the funds raised will be equally used to complete the remaining work in the housing project of Noida and to clear the dues of the Noida Authority so that the customers can go to register their properties.

RG Group is going to clear 25 per cent of its dues first and then rest of the amount would be paid by regular instalments until 2020-21 as per the Noida Development Authority process which has just announced the re-scheduling process to pay the pending dues and under this process

RG group is also developing one residential project in Greater Noida (West) by the name ‘RG Luxury’ where the construction is in full swing. The society has total 2,145 flats which are under construction. It is one of the FirstLandscaped Podium Residential Complex in Greater Noida.The project is spread over an area of 18.4 acres and it offers 2 & 3 bedroom apartments. The project is having all modern facilities and the flats are fully furnished and having Modular Kitchen, Cupboards in all Bedrooms, Wooden flooring in Master Bedroom.